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Principal Commissioner of Income Tax-2 Versus Lincoln Pharmaceuticals Ltd.

2015 (3) TMI 892 - GUJARAT HIGH COURT

Reopening of assessment - AO deleted the deduction under Section 80IB - ITAT not upholding the issuance of notice under Section 148 valid - Held that:- From the record, it appears and it is not disputed by Shri Bhatt, learned Counsel appearing on behalf of the revenue that as such alongwith the original return for the Assessment Year 2003-04 the assessee had produced the balance sheet in which the total value of the Plant and Machinery was ₹ 4,73,81,571/. Despite the above, the Assessing O .....

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roceedings for the Assessment Year 2003-04 was not permissible and was not legal and as such was bad in law. Under the circumstances, the learned tribunal has rightly not considered the appeal preferred by the revenue which was on merits of deletion of disallowance under Section 80IB of the Act. Under the circumstances, there is no substance in the present Tax Appeals and the same deserves to be dismissed. No substantial question of law arise - Decided against revenue. - Tax Appeal No. 135 of 20 .....

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13 for the Assessment Year 2003-04 by which the learned tribunal has allowed the Cross Objections preferred by the assessee and dismissed the appeal preferred by the revenue, by holding that initiation of the reassessment proceedings / reopening of the assessment, which was admittedly beyond the period of four years, was invalid, the revenue has preferred the present Tax Appeals with the following proposed questions of law; Tax Appeal No.135/2015 "Whether the Appellate Tribunal has erred in .....

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ereas the total value of the Plant & Machinery as per the balance sheet for all the three assessment years under consideration was above 3 crore?" Tax Appeal No.136/2015 "Whether the Appellate Tribunal has erred in law and on facts in holding that the issuance of notice under Section 148 was bad in law which was issued as per provisions available as per explanation 2(c) (iii) and 2(c)(iv) given below Section 147 of the Income Tax Act?" (2.0) The facts leading to the present Ta .....

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Assessing Officer granted the deduction under Section 80IB of the Act as claimed. Thereafter, after a period of four years of completing the Assessment Year 2003-04, the Assessing Officer initiated the reassessment proceedings under Section 147 of the Act mainly on the ground that though the assessee ceased to be an SSI Unit as it exceeded the limit of investment of Plant & Machinery i.e. exceeding the limit of ₹ 1 Crore and thus it is not eligible for deduction under Section 80IB of t .....

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x has escaped under Section 147 of the Act. The Assessing Officer passed the reassessment order for the Assessment Year 2003- 04 and deleted the deduction under Section 80IB of the Act amounting to ₹ 38,07,493/- and revised the income. (2.2) Feeling aggrieved and dissatisfied with the reassessment order passed by the Assessing Officer under Section 147 of the Act for the Assessment Year 2003-04 of disallowance of deduction under Section 80IB of the Act amounting to ₹ 38,07,493/- the .....

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lowance of deduction under Section 80IB of the Act. (2.3) Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A) in deleting the disallowance of deduction under Section 80IB of the Act on merits, the revenue preferred appeal before the learned tribunal, being ITA No.2687/Ahd/2010. Against the finding recorded by the learned CIT(A) holding the initiation of the reassessment proceedings under Section 147 of the Act as legal and permissible, the assessee preferred Cross Obje .....

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and Cross Objection No.153/Ahd/2013, the revenue has preferred the present Tax Appeals. (3.0) We have heard Shri Manish Bhatt, learned Counsel appearing on behalf of the appellant at length and we have perused the order passed by the Assessing Officer under Section 147 of the Act as well as the order passed by the learned CIT(A) as well as the impugned judgment and order passed by the learned tribunal. At the outset, it is required to be noted that admittedly the reassessment proceedings for th .....

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the balance sheet in which the total value of the Plant and Machinery was ₹ 4,73,81,571/. Despite the above, the Assessing Officer allowed the deduction under Section 80IB of the Act and, therefore, as such, it cannot be said that there was any omission and / or suppression on the part of the assessee in not disclosing the true and correct facts. If that be so, it cannot be said that the learned tribunal has committed any error in holding the reassessment proceedings for the Assessment Yea .....

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